Risk management , how ? | Bitcointalksearch.org

Best Dreams

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Quote from: monero.org on February 29, 2020, 03:33:06 AM

You will only realize you being greedy when you lose the trade because of greed or simply chasing the pump when its already about to dip.

Funny to know, yes this is only when you know. At the time you see your profit gone, that is when you will know but at the time of contemplation, you will not come to the reality of the possibility of not getting anything at all.
Fist management really also involves exit plan to maximize profit.

If you will make plan before you start trading you will avoid so many issues but if you will take wrong turn between trading it will harm you as every trader should have plan to keep patience as good and bad time comes in life but we will have to be ready facing it. Instead of quitting at wrong time we should wait and let the envioument be well so waiting is actual way to avoid risk .

Subbir

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Everything will usually depend upon our own how we operate But to avoid risk greed should be avoided Greed always hurts. Newcomers are at greater risk of being involved altogether sorts of work after greed. Therefore before doing any work, you would like to stay yourself attached and analyze the market well then it's possible to avoid the danger

Quidat

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Quote from: Best Dreams on April 18, 2020, 04:55:35 PM

Quote from: ?? on ??

Quote from: monero.org on February 29, 2020, 03:33:06 AM

You will only realize you being greedy when you lose the trade because of greed or simply chasing the pump when its already about to dip.

Funny to know, yes this is only when you know. At the time you see your profit gone, that is when you will know but at the time of contemplation, you will not come to the reality of the possibility of not getting anything at all.
Fist management really also involves exit plan to maximize profit.

If you will make plan before you start trading you will avoid so many issues but if you will take wrong turn between trading it will harm you as every trader should have plan to keep patience as good and bad time comes in life but we will have to be ready facing it. Instead of quitting at wrong time we should wait and let the envioument be well so waiting is actual way to avoid risk .

Risk is always there and its unavoidable and as long you do fight with market price volatileness then youre actively playing with the risk.
Of course, proper planning and good emotion handling will really be suggested into this industry because if you dont do such thing then expect
for mistakes to be committed along the way.Its just a matter of experience on how you do manage things up because each person do have
its own free will on how to handle things into these kind of situations.

Arcas

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Risk management when you trade with shit coin and not have potential at the future become profitable with continue running and get new partner with real business, I know and find many shit coin just on fire few day and then become shit coin at the least delist from exchange market and lost much money.

DevilSlayer

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Risk and management is about position sizing, setting invalidation and cut loss levels and also about discipline. In terms of position sizing, we should only put the money that we are going to risks. We should avoid all in for us to manage our risk carefully, maybe it is good if we will allocate 25% of our portfolio in every trade.

The invalidation levels are also important in order for us to minimize the losses, we should set our cut loss very tight especially if we want to protect our capital. Lastly the discipline, it is very important because our risks management will be a waste if we will not follow it and that is why discipline is important because it is the one will trigger for us to follow our plan.

Casdinyard

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Quote from: Stedsm on April 14, 2020, 02:45:41 PM

- Never trade with what you can afford to lose.

This is my personal first rule before trading. No selling of houses and titles, no pawning, not losing anything tangible but money.

Quote from: Stedsm on April 14, 2020, 02:45:41 PM

- Never risk more than 5% of your portfolio in a single trade, don't open multiple positions if you are not sure about diversification of your assets.

Well it depends because there are days that you need to really risk with the opportunity you have in front of you to gain but do not exceed 20% of your total capacity.

Quote from: Stedsm on April 14, 2020, 02:45:41 PM

- Never trade what you don't know anything about. You need to have some brief knowledge about a project to trade it.

Research! You know some beginners tend to just ride the flow without knowing the intrinsic value of investing to someone's project. Researching will make you more aware of the surface you are moving, it is not just about the price that you see on your monitor, it is what lies behind those numbers and people behind the project, you must know almost everything before jumping in.

Stedsm

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- Never trade with what you can afford to lose.
- Never risk more than 5% of your portfolio in a single trade, don't open multiple positions if you are not sure about diversification of your assets.
- Never lose more than 20% of your risked portfolio (i.e. 5% that I told you before)
- Never trade what you don't know anything about. You need to have some brief knowledge about a project to trade it.

SirLancelot

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Quote from: milewilda on April 14, 2020, 02:14:05 PM

Setting stop loss of 10% would really be recommendable in times like these but for those days where volatility intensity is high then its better not to put it up yet it can
easily be triggered or hit on.There are indeed several ways on reducing risk but managing or selecting which one would be used will be our job because not all things will work the same as others.

Honestly I never think about setting up stoploss for my trades because I am trading only bitcoins. Whenever market is going against my prediction, I will just change my positions into holding this way I am managing all may risks associated with my trading. I guess people can easily get rid of risk levels in their trading by simply choosing highly recommended assets like bitcoins. Because, you will be getting second chance like converting your trades into holding instead of booking losses.

Other than converting open position into holding for long-term, I am not having any special strategy for risk management. Still, I am booking profits on each and every trade but in long a time frame.

milewilda

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Quote from: wozzek23 on April 14, 2020, 05:36:31 AM

Quote from: Jhonyguy on February 01, 2020, 03:58:54 AM

successful trading is about managing risk minimising it as possible as we can , i have read that with correct risk management even with flipping a coin we can do trading and be profitable

i want to know what methods/rules are there to minimise risks

There could be multiple strategies to control and to handle risks effectively while trading but what I am following in my own trades is, risking only up to 10% of my available capital. Yes, I do set my stop-losses levels only up to 10% of my capital regardless of where is my target levels will be. I have seen people who adjust stop-loss levels based on targets like if a signal is about 20% of profits then they start think about stop loss up to 20% and when market is reaching those 20% of stop loss levels.

But, I do not change my policy of setting stop loss regardless of what signals are suggesting. This helps me to close the trades when market is doing against me like I do not need to wait more but I may start another trade to compensate my previous trades. I believe this is all about how we treat the unexpected losses and how we maximizing the chances to get us into profit zones.

It depends on which coin you are trading into because we know that 10% movement on daily basis can really be triggered on but it would always depend on the market condition just like what we are seeing now where price
can play between 2-5% in 24 timeframe.Setting stop loss of 10% would really be recommendable in times like these but for those days where volatility intensity is high then its better not to put it up yet it can
easily be triggered or hit on.There are indeed several ways on reducing risk but managing or selecting which one would be used will be our job because not all things will work the same as others.

tbterryboy

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Quote from: FanEagle on February 29, 2020, 02:53:06 PM

Best one known is honestly stop loss. At least with stop loss you can make your investments with some sort of guarantee that you will not lose too much. Of course you should invest into things with a lot more research and never put money you can't afford to lose into bitcoin or crypto in general however if you do all of that and you are still not sure about what will happen, the last line of defense should be stop loss.

With all the information you have and investing into stuff you are aware yourself that would mean that you could probably make money and even if you lose money you can wait until the tide turns since you can afford it or otherwise you would at least have stop loss, so it is the best one known right now.

That is what stop loss is usually about, if it looks like a coin is about to go up and it doesn't, it rarely ever goes down under 10% and that means if it does, that is a whole market crash.

Let's say there is a coin that worths 10 bucks, you buy it expecting it go to 12-13 dollars or even maybe higher soon, if it goes under 9 dollars very quickly, that usually indicates a whole market crash, at the very worst case it should go down to 9.50 levels without anything major going on, why would anything go down more than 10% if there is nothing major going on, there is no reason for it to go down that much, hence the stop loss.

However do not forget to put buy orders as well at support locations, that helps a lot as well and that way you can get rid of it when it breaks support, and you can rebuy at the next support.

rexxarofmoknathal

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Minimising risk is a factor that's in every's trader/investor's mind. After all, nobody wants to add money to a collective with increased risks of failure to generate value for that investment. So calculating the risk before entering into an agreement be it trading, bonds and other similar services is unsurprisingly very valuable and a duty everyone should comply. In my trading strategy as well as other investments I always go for a reduced risk with almost guaranteed return (i.e. interest).

However the risk management strategies used by one individual may not apply to the rest of investors like a whale or even a moderate level investor, so choosing how to manage your own is crucial to this business. Having said this there are some common strategies that people can apply but I personally only apply what I experienced.

wozzek23

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Quote from: Jhonyguy on February 01, 2020, 03:58:54 AM

successful trading is about managing risk minimising it as possible as we can , i have read that with correct risk management even with flipping a coin we can do trading and be profitable

i want to know what methods/rules are there to minimise risks

There could be multiple strategies to control and to handle risks effectively while trading but what I am following in my own trades is, risking only up to 10% of my available capital. Yes, I do set my stop-losses levels only up to 10% of my capital regardless of where is my target levels will be. I have seen people who adjust stop-loss levels based on targets like if a signal is about 20% of profits then they start think about stop loss up to 20% and when market is reaching those 20% of stop loss levels.

But, I do not change my policy of setting stop loss regardless of what signals are suggesting. This helps me to close the trades when market is doing against me like I do not need to wait more but I may start another trade to compensate my previous trades. I believe this is all about how we treat the unexpected losses and how we maximizing the chances to get us into profit zones.

rose9696

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Quote from: Jhonyguy on February 01, 2020, 03:58:54 AM

successful trading is about managing risk minimising it as possible as we can , i have read that with correct risk management even with flipping a coin we can do trading and be profitable

i want to know what methods/rules are there to minimise risks

I am currently trying out my new account, it works quite well. It is a 2% and 6% rule, I have read this rule of a legendary trader Alexander Elder. He is one of my inspirations in trading and his method is very effective. But to accomplish this method, we need to have a strong mentality and perseverance.
2% means that in 1 time of your trade, you must only lose no more than 2% of your total account. and if you're constantly losing money and find your account has dropped 6%, it's time to take a break and review your trading method.

TheUltraElite

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So anyway, I applied as a merit source :)

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Under current market circumstances, it is difficult to manage detailed risks, it is much easier to generalize them.

Right now the only risk is chance of going down. Market is recovering though the world will take longer time to recover.

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I mean that you should lay the worst possible outcomes of events that are possible on the market, and be guided by these catastrophic scenarios as your own risks in the process of your investments.

If you really do that then you will never be able to make a proper sane decision on how to buy or sell. Anything can happen but just because a pandemic is currently happening does not mean it will happen every other year. But the market will have a bad effect on the economy. There can be calculated risks but not an overtly outlier risk calculation.

Quote

In this case, you will always be ready for the worst, which means you will not get into a situation where you do not know what to do next.

It seems ideal that way but it is way more complicated if you jump into the real thing even with a lot of analysis and charts at hand. Wink

madnessteat

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I have highlighted several rules that help to save my money while trading:

- I never trade in a state of rage after an unsuccessfully closed deal, as trading in such a psychological state very often leads to serious mistakes.

- Every new deal has nothing to do with my past deals. The result of any deal cannot be determined.

- I clearly understand how much money I can use in one deal and how much interest I am willing to lose if the price of an asset goes in the opposite direction to my expectations.

- I only enter into a deal when I see a clear trend and pattern. If I am in doubt, I simply do not open a position.

alan2here

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Quote from: Ararbermas on February 26, 2020, 11:14:13 PM

You know im not expert in trading but for me the most important is self discipline because if you don't have such manner you can't avoid risky situation .i actually don't believe in strategies because it's still useless if you don't know how to set your limitations spending money through everything.

Discipline is the power to win in this market but not everyone can do this because the crypto market fluctuates very quickly. Anyone has made a lot of mistakes, but if you take it as a lesson, you will surely gain a lot of new knowledge.

Risk management is not difficult but it depends on your decision because the crypto market is often difficult to predict.

cryptothreads

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Quote from: monero.org on February 29, 2020, 03:33:06 AM

Risk management includes learning to trade well. Learning how to read the charts by doing so means you can calculate whether to go long or short. You will only appear greedy when you don't know when to exit your trade, when you see the chart that the market is almost going to burnout you can calculate and sell and wait again. You will only realize you being greedy when you lose the trade because of greed or simply chasing the pump when its already about to dip.

Not everyone is good enough to manage risks in this market because greed is an inevitable thing when choosing to invest. I have had these thoughts in the past and it is difficult to apply because if the market goes up you will never want to sell the coin you are holding.

When I understood, it was too late because the market is now very difficult to predict and no longer increase as before.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: desticy on March 09, 2020, 06:08:21 PM

The most important things in risk management are working with errors and minimizing their consequences.

It is more in terms of how to manage risk and not how to evaluate losses based on errors. I think you got something wrong there. Correction of errors are for post-trading evaluation.

You manage risk by doing research on the projects you are investing in and their regular reports to keep track of their growth and development. Investors want a good quarterly report nothing more.

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As a rule, errors occur most often due to psychological conditions, in other words, when you are emotionally involved in trading.

Errors cannot be judged like that. It is easy to judge them after committing them but not always possible to change the outcome when the event is actually occurring.

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The first thing you should do in the process of your training in trading is to work with your emotional states, because it depends on him how your thinking will work, interruptions and mistakes, or clearly and harmoniously.

If a person is not emotionally well, why would they trade. Of course here comes the question of people who are trying to get rich quick and those who are professionally trading everyday.

desticy

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Risk minimization is probably one of the most important topics in the ranking. After all, how much your risks are balanced directly affects the amount of profit that you ultimately get.
The most important things in risk management are working with errors and minimizing their consequences.

As a rule, errors occur most often due to psychological conditions, in other words, when you are emotionally involved in trading.
The first thing you should do in the process of your training in trading is to work with your emotional states, because it depends on him how your thinking will work, interruptions and mistakes, or clearly and harmoniously.

FanEagle

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Best one known is honestly stop loss. At least with stop loss you can make your investments with some sort of guarantee that you will not lose too much. Of course you should invest into things with a lot more research and never put money you can't afford to lose into bitcoin or crypto in general however if you do all of that and you are still not sure about what will happen, the last line of defense should be stop loss.

With all the information you have and investing into stuff you are aware yourself that would mean that you could probably make money and even if you lose money you can wait until the tide turns since you can afford it or otherwise you would at least have stop loss, so it is the best one known right now.

Topic: Risk management , how ? (Read 939 times)